HomeMy WebLinkAboutBy-law No. 2016-032 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW NO. 2016-032
A BY-LAW TO ADOPT A MUNICIPAL CHARITABLE DONATION RECEIPT POLICY
WHEREAS the Council of The Corporation of the Municipality of Bayham recognizes
the need for a clear and concise policy concerning Municipal Charitable Donation
Receipts;
AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it
advisable that the Policy on Municipal Charitable Donation Receipts be confirmed and
adopted by By-law;
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT effective upon passage the Policy on Municipal Charitable Donation
Receipts attached hereto as Schedule "A" and forming part of this by-law is
hereby adopted as the policies and procedures for the management of Municipal
Charitable Donation Receipts for the Municipality of Bayham.
2. THAT this Municipal Charitable Donation Receipt Policy By-law may be
amended from time as directed and deemed necessary by The Council of the
Corporation of the Municipality of Bayham
3. THAT any Municipal Charitable Donation Receipt policies previously adopted are
hereby repealed;
4. AND THAT this by-law shall come into full force and effect upon final passing.
READ A FIRST, SECOND AND THIRD TIME and finally passed this 21st day of
April 2016.
M°YOR LE-K
,- PROCEDURE
MUNICIPALITY OF BAYHAM
.,
"Oy
�� oortunity Is�
SUBJECT: Charitable Donations Receipt Policy
DEPARTMENT: Treasury
DATE ORIGINATED: April 7, 2016
REFERENCE : Procedures-Treasury-TR-14-2016-charitable donations
PURPOSE
This policy formalizes the charitable donations receipt program, including accounting for donations of
cash or in-kind made to the Municipality.
This policy also outlines the standard for evaluating donations in accordance with Canada Revenue
Agency (CRA) guidelines.
This policy will serve as the foundation for standard operating procedures for issuing official charitable
donation receipts (official receipts) to donors for income tax purposes.
POLICY STATEMENT
The Municipality of Bayham will issue official receipts for donations that qualify as charitable
donations. If requested, the Municipality will issue official receipts to donors for eligible donations with
a net cash value of or net fair market value of $20 or more.
SCOPE
This policy applies to all departments within the Municipality of Bayham; to all agreements between
the Municipality and organizations and individuals that contribute either financially or in-kind to the
Municipalities operations, programs, services or facilities.
OBJECTIVES
This policy formalizes the charitable donations receipt program within the Municipality to ensure that
official receipts are issued in an appropriate and consistent standard across the organization and in
accordance with CRA guidelines.
DEFINITIONS
For the purpose of this policy, unless otherwise stated, the following definitions shall apply:
Term Definition
Charitable Donations Voluntary transfers of tangible property,
including cash.
Donations in-kind Tangible property, other than cash, that are
eligible donations
Eligible Donations Donations that can be acknowledged with official
donation receipts for income tax purposes, in
accordance with CRA guidelines.
Fair Market Value (or Valuation) The highest dollar value that a property would
bring in an open and unrestricted market, between
the willing buyer and the willing seller who are
acting independently of each other.
The fair market value of a property does not
include taxes paid; taxes are costs incurred by the
purchaser.
Net Amount of Donation The fair market value of the donation less any
advantage/benefit received or to be received as a
result of the donation.
Non-Qualifying Donations Donations that cannot be acknowledged with
official donation receipts for income tax purposes,
in accordance with CRA guidelines.
POLICY GUIDELINES
To be eligible for an official donation receipt, the donation has to:
• Be made payable to the Municipality, and
• Be made in cash or in-kind, and
• Be voluntary, and
• Be supportive of the Municipality's mandate or beneficial to the community of the
Municipality of Bayham.
Donations in-kind may be accepted only after the following has been assessed:
• Compliance with Municipal by-laws and/or policies
• Compliance with the laws, conventions and treaties of the other levels of
government
• Consistency with the Municipality's priorities, mandates, strategic and business plans.
• Associated risks (e.g. Financial risks; political risk; health and safety issues)
• Condition of the donation
• Value of the donation
• Usefulness of the donation to the Municipality
• Cost/benefit analysis, considering installation, storage, maintenance, renewal,
decommissioning, replacement and related costs;
Written valuation of donations in-kind, done within the last 6 months, shall be submitted with the
requests for official receipt and is to meet the following requirements:
1 $1,000 or less;
o Appraisal by knowledgeable internal staff; plus
o Valuation from online auction and shopping website
1 Over$1,000:
o External appraisal of property by an independent and arm's length competent
individual is required;
o The costs associated with obtaining a qualified appraisal shall be the
responsibility of the donor.
Authority for acceptance or denial of donations in-kind with appraised value of:
• Under $20,000 - Treasurer or Chief Administrative Officer
• $20,000 and more - Council approval
Non-Qualifying Donations that cannot be acknowledged with official donation receipts for income
tax purposes, in accordance with CRA guidelines:
• Intangibles such as services, time, skills, effort
• Donations that are given to the Municipality intended as a flow through to a specified
recipient who does not have charitable organization status.
• Donations of a business marketing products such as supplies and merchandise
• Sponsorship in the form of cash, goods or services toward an event, project, program or
corporate asset, in return for commercial benefit (i.e. logo placement or presenting
sponsorship). The intent of a sponsorship is to enhance the image and marketing
opportunities of the sponsor in its target market and/or the community. Sponsorships are a
reciprocal arrangement benefiting both parties. Usually the cost to the sponsor is
categorized as a business expense.
ROLES
Accountability Treasurer
Signing Authority Treasurer or CAO to sign official donation
receipts on behalf of the Municipality of
Bayham
Responsibilities • Treasurer-for maintaining the Charitable
Donations Receipt Policy and related
standard operating procedures,
communication of policy and procedures
to departmental staff, advising staff on
eligibility of charitable donations and
review donation accounts analysis
prepared by staff.
• Accounts Receivable/Payroll Clerk-
responsible for issuing official donation
receipts in compliance with the CRA
guidelines and maintain record according
to the CRA requirements;
in-kind donations are properly
assessed, donation accounts are
reconciled
• Departmental staff accepting donations-
responsible for compliance with the
Charitable Donations Receipt Policy and
any related standard
operating procedures; ensuring Official
Donation Receipt Request Form
(Appendix A) is completed and submitted
to the Treasury Department with the
donated item and any supporting
documentation
Appendix A -10-Y1144.4
9344 Plank Road •M.�. ,
P.O.Box 160
Straffordville,ON NOJ 1Y0
519-866-5521 OAPui'tunity jslt°45
Donor Information
Donor Name(including middle name):
Or Charity/Organization:_ Business Reg.#:_
Donor Address(including fire#):
Telephone Number:
Donated Item
Cash Donation:
Amount:$ Date Donation Received:
In-Kind Donation:
Description of Donation:
Date Donation Received:
Date of Appraisal:
Name of Appraiser:
Address of Appraiser:
Please attach the Appraisers letter acknowledging the fair market value
Municipal Use
Department
Name of Municipal Employee Accepting Donation:
Signature: Date:
Treasury:
Date Receipt Issued: Receipt#:
Treasury